GM to buy more high-value car parts in China

GM to buy more high-value car parts in China http://www.autonews.com/apps/pbcs.dll/article?AID=/20071130/COPY01/311300004/1131&refsect November 30, 2007 - 12:30 am ET
     BEIJING (Reuters) -- General Motors expects to buy more, increasingly sophisticated car components in China, the firm's fastest-growing procurement market, as the country's auto parts industry clambers up the quality ladder.
GM, one of the world's top two auto makers, will increase its procurement spending in China by 25 percent a year in the period 2005-2010, a senior executive said today.
Bo Andersson, group vice president in charge of GM's global purchasing and supply chain, declined to give a dollar total for the plastics, electronics parts, aluminum wheels and other components that GM buys in China.
Andersson said the local industry was increasingly producing higher value-added parts that GM now procures elsewhere.
GM, which buys 20 million parts a month from 190 Chinese suppliers, had experienced no quality problems over the past year, he told a news briefing.
"You will see a shift into air conditioning and also chassis parts, steering parts and brake parts," he said.
Andersson said 90 percent of the materials and parts in a locally manufactured GM car are sourced in China -- 60 percent of them from multinational firms and 40 percent from Chinese rivals.
He cited Dicastal Wheel Manufacturing Co Ltd, which after just a few years as a GM supplier now provides half of all the aluminum wheels that GM uses globally.
GM is reducing costs after losing more than $12 billion in the past two years. It is in the midst of a sweeping restructuring that includes cutting more than 34,000 jobs and closing 12 plants in North America.
--
Civis Romanus Sum

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So this is supposed to incite my flag-waving urge to "buy American"??
A Nissan from TN has a higher domestic content than many GM's.
Yeah, the profits flow off shore.
But buying an "American" car? There really is no such thing anymore. Assembled here, yes. Manufactured here? Hardly.
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That refer to vehicles being made in china for sale in China, not the US. The UAW Union contracts with GM require 70% American parts and materials. Includes the vehicles made in GM/Toyota plant in California. GM stock holder report says GM manufactures over 80% of the vehicle they sell in the US and Canada, in the US or Canada
wrote:

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Mike hunt wrote:

I'll bet you a 2 liter bottle of Dr. Pepper that more and more Chinese parts will find their way into GM vehicles as time passes.
--
Civis Romanus Sum

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Perhaps but what is the problem? Most Toyotas sold in the US are imported and those that are assemble here are full of imported parts yet the cars seem to be OK Quailty is a a function of management, no differace in where the parts or cars are made..
wrote:

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I try not to buy anything made in china or mexico. If more people would do the same then there would be more things made in America. Simple Law of supply and demand, if there is no demand then there is no need for a supply.

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Tough to do though. Hardly any appliances are made here. Try to find a non-China made toaster. As long as we continue to buy low priced appliances they will keep making them.
I'm waiting for the day the Chinese government refuses to sell to us. We'd panic and give in to any demands they'd make, like twice the price. They could severely damage our economy with one embargo.
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It might do us good. Some people learn hard.
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Edwin Pawlowski wrote:

I've been trying very hard to find a good four slice toaster Not Made in China. So far the only option seems to be a ~$400 one from England. Ouch. I would gladly pay $100 for a decent US made toaster, but my only option seems to be $40 from China or $400 from England. Argh.
John
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I went through the same exercise a couple of years ago. I ended up with an American brand but made in China. The Dualit from England was, as you see, very much higher. A few days after buying my $50 toaster, I did see some in Wal Mart for $6.97. I have no idea how good it was for that price, but if it works at all for that money it is probably a good buy. How do you compete?
This sucker weights almost 8 pounds. It is more a machine than appliance. http://www.lnt.com/product/index.jsp?productId 33604
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Look at the bright side;
If GM gets components from China for 40% less,
then, they'll probably charge 40% less for their autos. ;o)
<rj>
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American consumers are too greedy to do that. Look at all the imported car and othjer stuff they buy. They don't care that their buying choices are sending the jobs of their children and grand children off shore.

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labatyd wrote:

Somehow the "average guy" in 1967 was able to get around just fine.
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